The Memphis appeal. [volume] (Memphis, Tenn.) 1886-1890, 1887-10-26
STILL SITTING
The Pacific Railways Commission.
A Very Fluent and Plausible Wit
ness on the Stand.
He Explains that Everything Has
Been Straight as u String.
No Congressmen Bought, but Fine
Dinners Givon.
He Collnpses Under n Pointed Ques-
ton by one of the Astute
Commssionors-Mi Missing
Books.

way COMMISSION itNulnou " injuries Nv
No 10 Wall street, today. Its inyostiga-
tions are about To close, and II was said
by the commissioners that probably tho
witnesses ut this hearing would he the last
called. 4 telegram from Gov. Sanford was
rad, in which he dcsircd the appointments
Of a court to inquire into the equities cx-
sing between the government and tho
Central Pacific.
Eningham II. Nichols, formerly treas
urcr oi the central branch of the Central
Pacific railway, then known IA the Atchi-
son Il Pixies Peak railway, was the frst wit
ness.
tie detailed the organization and the
construction ui the iirSt roo miles OF tho
Atchison Il Pixies Peak railroad. lie
said that hc considered that the road had
a perfect right Ia consolidate with another
mad, and that III grants ui land should 90
tu the ruad into which II was merged. Tho
witness then explained the difficulties they
had experienced in trying to fulfill tho
government requirements, ami had finally
found il impossible tn fully carry out tho
road. Only unc-tcuth ui the lands which
were Ia bc granted To them 10y the govern
mcnt came To them Commissioner An
| drrsnu remarked that II seemed impussi-
! hlc that u rad intended 10 Ice run only
/ 100 miles should hv allowed Ia consolidate
| aud run to the Pacific. The witncsi
| replied that u statute permitted
| the consolidation, la the consolidation
! with the Atrhi-pn, Colorado q Pacific
among the controlling powers were Oliver
! rumcny, Augustus Corning, thauncey
and Henry Willard William G. Ncimorc,
| John A. Stuart, Gov VIM. Cluilu aud 4.
:. Mrncs. The mad employed, among
many others, Thomas 4. Hendricks and
! Rc,crdy johnson, but not when they were
| Ia office. Bclorr the reorganization, when
hr came IN, 100 first murpig bonds were
issued to thusc previously m power, but
hr has never been able Ia lind the reason
| iur IL. liut this obligation WIS nude con
| diuunal when hc and lair friends went into
| the COMPANY. Witness never received
any Of the siOO bonds. The bouks Of the
construction oi the road known Us tho
Oshomc books, Wcp l-t Thomas VI.
IOihcr attended tothe disbursements. No
other money, Snyc the bonds, The witness
said, WIS dishurcd except for compCn-
| sntiun.
! Witness glid that NJ bond ar dollar was
| distributed except Tor u return, but bonds
wen issued In consideration III loans. II
.2n.OOO ~ So UO was put into the COM
plnp fpr thrc ~ four months hund
/ would be- given In addition to thc interest.
| About scycnty-iyv bonds were ro issued.
| Then thcr wcU bonds iur what wcro
| known us existing obligations which
wcrr not defined. Witness got four Of tho
bonds ~ shown 10y the books. Governor
Amrs kept a memorandum of the nad's
transaction In note book Between 1870
aud 1873 the road WIS In a bad way. In
1870 the tint mortgage bond had 20 10
funded. When witness and his friends re-
solved to run the rund IN Denver Jay
Gould stepped In and paid $3.50 per share
luf stock that WIS, according a. the witness,
uflitllc value. Mr. Nichols uid hc believed
that Mr. Gould got his information ~ 20
the ruad's intention lrum one Joe lhcharl-
son. who WIS Hung ont 1T different offices
nn The rad Ah,I IIc sale WIS made
| witness, who conducted IT, was paid S2j,-
uO0 for legal rrNiccs. When he went 10
! Washington In 1853 IN see about
| the bill ior the relief Of tho
| Central branch. Mr. Nichols inter.
/ viewed the congressman. No money
| was given Ia congressman, but some was
| expanded In dinners 'or them nj the Airing
ton. These Ncw given for the purpose u
getting acquainted with the mrinbers and
talking about the hill. Bcwtccn January
and July, 1870, So was expended for
such incidental expenses. William NJ.
! E,uns was paid q fee oi 5000. Two items
NJ u ,OOO each which were charged against
him, Mr. Nichols said, worr probably for
some political operations Of Mr. Pomcroy.
NJ Nichols said that any infcwnccs from
the books Of the central branch, TO the effect
that hc had moi paid full value for all tho
sta, issued Ia him, were incorrect. lie
had paid lint at the rate " $40 u share and
aitcrward so shar. The books show
ing that for l.6lG shares Of stock issued at
one time and luD shares at another he had
only paid >Gn 10 a. the company could
not Gc right lie believed lac had e0t
shares II his own aud iOl OF his fathers
estate, part II which hc transferred 10
Oliver AmcH. Mr.. Nichols said that he raid
at the rate ol sluO pcrsharc on such stock ~
ho received. The hooks upon which tho
accountants Of the commission had based
their figures must be- wrong. lie could not
understand why the books did not show
any payment by him for 1870 shares al one
time, nor could be- explain why he should
pay liz par value for stock about january.
1879, when Gould was about 30 buy In tho
stock at $50 aud while the stock was SELL
ing ~ low M 10 cents on q dollar.
Commissioner Anderson aslonished tho
witness 10y asking him what had become
oi Sl3l, 900 changed against him ON tho
books Witness thought Il must have
been for counsel fccs dinners for con-
grc~mcn aud incidental expenses. Wit
ness thought the Central branch was yet
entitled la the government lands 100 miles
beyond the western terminus OF the road.
lie did not believe the fact that they had
not carried their road out at that distance
made any difference. They had tiled their
mans and Wcrc cNOnculted from q contin-
uancc oi the road.
Mr. Nichols believed that the govern
mcnt should wipe out the accumulation u
interest ON all iis claims against the Pacific
railroads, ~ they have benefited the pub
lie 10 a grvaicr extent They could then
pay the principal :
The editors Of the Arbcilcr.Zeitung, Chi